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Shared ownership - something to look at if you "own" one
Comments
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Shared ownership is not a nightmare, it's a godsend...
For the developer who can overcharge for the property.as long as the people going through the process understand what they are doing.- Buying an overpriced unit
- Paying rent which increases at RPI (far higher than pay increases)
- Paying massive service charges
- Restrictive extra conditions
- Nightmare trying to sell
I'm going shared equity on a freehold property, newbuild, with 10 years to pay back the developers for their 20% share. The easiest way to look at it is that the developers are paying the deposit,
No they have just overpriced it another extra 20%
Especially if prices continue to fall for next decade. :eek:and we have 10 years, 5 years of which is interest free to pay them back... but we get the house now.
Your talking about shared equity and not shared ownership, another scam to keep prices high.It's not all doom and gloom.
Yes it is, try speaking to existing owners.
:exclamati Shared ownership is a time bomb now
:exclamati Shared equity is a time bomb in 5-10 years.All this LTV stuff as well... it's only a problem if you're trying to make a quick buck on your house, or NEED to move. If you're okay where you are... then so what?!
Needs change and often your home requirements.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Just to check if I understand this correctly.
Property Price is £200K
You pay £100K for 50%
OK, so.
You put £20K upfront and have an 80K mortgage
You pay 50% of market rent on the remaining portion you are not buying?
If you are 2 months in arrears of rent they can take the part buy bit back off you, do not pass go, do not collect £200, it just gets taken off you?
Why not, if faced with financial trouble to the point where you would go in arrears whatever you did, just keep paying the rent. At least that way when the bank come for you ignoring the mortgage you can at least get proceeds of sale?0 -
Shared ownership is not a nightmare, it's a godsend... as long as the people going through the process understand what they are doing.
I'm going shared equity on a freehold property, newbuild, with 10 years to pay back the developers for their 20% share. The easiest way to look at it is that the developers are paying the deposit, and we have 10 years, 5 years of which is interest free to pay them back... but we get the house now.
It's not all doom and gloom.
All this LTV stuff as well... it's only a problem if you're trying to make a quick buck on your house, or NEED to move. If you're okay where you are... then so what?!
I'm glad that you think this has worked for you, but these schemes are not there to benefit the buyer, although this is how it is presented.
Had the scheme not been around and you and others not purchased their properties then they would not have sold and the price would have had to come down to sell 'normally' ..... Who benefits as thing stand?0 -
My DD is doing a business degree & her earnings should rise considerably in a couple of years time.
With the number of grads being churned out these days thanks to labours 'everyone should go into further education no matter the cost or standard' I'd maybe be careful about predicting future earnings.0 -
Blacksheep1979 wrote: »With the number of grads being churned out these days thanks to labours 'everyone should go into further education no matter the cost or standard' I'd maybe be careful about predicting future earnings.
She & we have/are funding it, she hasn't got a loan.
Perhaps no one should bother with degrees then & we should all rent & line the pockets of a select land owning few & "know our places guvnor";)0 -
But they aren't, because unless they buy the full 100% (many associations wont allow this anyway), they will never actually own the house or any part of it.They would rather pay their own mortgage than someone elses.
Now is the time to get on the property ladder while they have no children, if they rent it will start eating into their mortgage deposit money & they certainly won't save much while lining the landlords pockets.
Shared Ownership is a complete fiddle, and i have sympathy for anyone on the scheme that actaully believes they are a property owner.
THey have all the responsibilities of owning the house PLUS they pay rent PLUS they own nothing.
Either get a mortgage for the whole amount or rent.
................................................................................................
You also need to stop this fixation with Surrey.
I live in anaffluent area of Cambridgeshire, and i rent out a 3 bedroom house here for over £1200 per month.0 -
Perhaps so, as a degree these days, unless from a good uni, amd with a high mark, isn't worth the paper its written on.She & we have/are funding it, she hasn't got a loan.
Perhaps no one should bother with degrees then & we should all rent & line the pockets of a select land owning few & "know our places guvnor";)
Being a graduate is no longer a sign of intelligence.0 -
But they aren't, because unless they buy the full 100% (many associations wont allow this anyway), they will never actually own the house or any part of it.
You also need to stop this fixation with Surrey.
I live in anaffluent area of Cambridgeshire, and i rent out a 3 bedroom house here for over £1200 per month.
I thought the idea of shared ownership was you bought as large a % as pos & bought more as you could until you got to 100%.
I don't have a fixation with Surrey at all, I'm just pointing out that the regular housing ladder is very difficult for people to get onto if they are tied to areas with high house prices (by work &/or family), I can only speak of what I know & Surrey is where we live.0 -
I don't have a fixation with Surrey at all, I'm just pointing out that the regular housing ladder is very difficult for people to get onto if they are tied to areas with high house prices (by work &/or family), I can only speak of what I know & Surrey is where we live.
When your whole family and all your friends live in one area and you want to be around them went you start a family it makes sense to live in it! Either that or convince everyone to go and live in a cheaper area!
It is harder in Surrey than it is in other county's because so many properties are overpriced and it is a hugely affluent. Your average starter homes is £175k.They are only on about 20 each at the moment.
Don't think that will get them much.
I guess you earn a bit more.
Not hugely but we had a big deposit. I also didnt bother with uni but thats because it wasn't the right choice for me. I had 3 A grade and 1 B grade A levels which was enough to get me started in what I wanted to do. So I perhaps have an extra 3 years of work experience and references on people my age who did go to uni."It would be so nice if something made sense for a change" ~ Alice in Wonderland0 -
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